Michigan

Michigan estate tax is a pickup equal to the federal state death tax credit (zero since federal credit repealed)

“The tax is equal to the maximum allowable federal credit under the internal revenue code for estate, inheritance, legacy, and succession taxes paid to the states.”

Note: Quote proves pickup structure; zero-tax conclusion requires the federal IRC 2011 credit repeal. Treasury inheritance FAQ (deaths on/before Sep 30 1993) 403s to fetchers.

Michigan income tax rate is 4.25% flat on adjusted gross income

“There is hereby levied upon the taxable income of every person... a specific income tax at the rate of 4.25 percent of taxable income.”

Note: Personal exemption is $5,000/person (2025). A 2026 trigger reduction is possible under MCL 206.51(2) revenue conditions; current confirmed rate is 4.25% for TY2025. Detroit city income tax (2.4% residents, 1.2% nonresidents) applies to Michigan taxable income including capital gains.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

MI taxes out-of-state muni bond interest; MI bonds exempt MCL §206.30(1)(a)

“Add gross interest income and dividends derived from obligations or securities of states other than Michigan or a political subdivision or instrumentality of states other than Michigan.”

Note: URL uses the doc.aspx endpoint; canonical path is mcl.legislature.mi.gov/MCL/.

MI taxes out-of-state muni bond interest; MI bonds exempt MCL §206.30(1)(a)

“Add gross interest income and dividends derived from obligations or securities of states other than Michigan or a political subdivision or instrumentality of states other than Michigan.”

Note: URL uses the doc.aspx endpoint; canonical path is mcl.legislature.mi.gov/MCL/.

Michigan conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“For the purpose of this part, 'Michigan taxable income' means, in the case of an individual, federal taxable income as defined in the Internal Revenue Code.”

Note: MCL 206.30(1) adopts federal taxable income as the base for Michigan tax purposes. Rolling IRC conformity means §1400Z-2 provisions apply via this incorporation mechanism. Verbatim quote confirms the conformity provision.

Michigan conforms to IRC §1202 QSBS gain exclusion

“For the purpose of this part, 'Michigan taxable income' means, in the case of an individual, federal taxable income as defined in the Internal Revenue Code.”

Note: MCL 206.30(1) adopts federal taxable income as the base for Michigan tax purposes. Rolling IRC conformity means §1202 QSBS exclusion applies via this incorporation mechanism without explicit addback. Verbatim quote confirms the conformity provision.

Michigan subtraction for U.S. obligation interest requires exemption from state taxation under federal law; FNMA and FHLMC have no such federal bondholder exemption

“Subtract income from United States government obligations to the extent included in adjusted gross income and specifically exempt from state income taxes under the laws of the United States.”

Note: MCL §206.30(4) subtraction requires the income be 'specifically exempt from state income taxes under the laws of the United States.' FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) contain no bondholder exemption from state income taxes. No Michigan DOR named-entity publication found; confidence: medium.

Michigan income tax rate is 4.25% flat on adjusted gross income

“There is hereby levied upon the taxable income of every person... a specific income tax at the rate of 4.25 percent of taxable income.”

Note: Personal exemption is $5,000/person (2025). A 2026 trigger reduction is possible under MCL 206.51(2) revenue conditions; current confirmed rate is 4.25% for TY2025. Detroit city income tax (2.4% residents, 1.2% nonresidents) applies to Michigan taxable income including capital gains.

U.S. Treasury interest exempt from Michigan income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Michigan income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Michigan income tax rate is 4.25% flat on adjusted gross income

“There is hereby levied upon the taxable income of every person... a specific income tax at the rate of 4.25 percent of taxable income.”

Note: Personal exemption is $5,000/person (2025). A 2026 trigger reduction is possible under MCL 206.51(2) revenue conditions; current confirmed rate is 4.25% for TY2025. Detroit city income tax (2.4% residents, 1.2% nonresidents) applies to Michigan taxable income including capital gains.

Michigan income tax rate is 4.25% flat on adjusted gross income

“There is hereby levied upon the taxable income of every person... a specific income tax at the rate of 4.25 percent of taxable income.”

Note: Personal exemption is $5,000/person (2025). A 2026 trigger reduction is possible under MCL 206.51(2) revenue conditions; current confirmed rate is 4.25% for TY2025. Detroit city income tax (2.4% residents, 1.2% nonresidents) applies to Michigan taxable income including capital gains.

Michigan Uniform Disposition of Community Property Rights at Death Act (adopted 1975, effective March 31, 1976)

“This act shall be known and may be cited as the 'Uniform disposition of community property rights at death act'.”

Note: Michigan enacted UDCPRDA as Act 289 of 1975, effective March 31, 1976. Protects the community property character of assets acquired in community property states when a couple moves to Michigan. At death, the surviving spouse retains their one-half community property interest. Michigan is not a community property state for income tax purposes.

Michigan conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“For receiving, earning, or otherwise acquiring income from any source whatsoever, there is levied and imposed under this part upon the taxable income of every person other than a corporation a tax at the following rates in the following circumstances: ... (b) Except as otherwise provided under subdivision (c), on and after October 1, 2012, 4.25%.”

Note: MCL 206.51 imposes the tax on taxable income, which MCL 206.30 builds from federal adjusted gross income, so the federal Section 1212 capital-loss carryover flows through. No published guidance addresses a carryforward imported from a pre-residency year; that application remains a structural inference.